Shenguan : 2016 Interim Results Announcement

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SHENGUAN HOLDINGS (GROUP) LIMITED

神冠控股（集團）有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 00829) 2016 INTERIM RESULTS ANNOUNCEMENT FINANCIAL HIGHLIGHTS Six months ended 30 June

2016 RMB million	2015 RMB million (Restated)
Financial highlights
Revenue	430.7	435.7
Gross profit	144.2	219.4
Profit before tax	93.1	185.6
Income tax expense	(14.2)	(34.5)
Profit for the period attributable to owners of
the Company Profit for the period attributable to owners of	89.0	151.1
the Company (excluded amortization of
technology knowhow)	98.7	151.1
Basic earnings per share, (RMB cents per share)	2.73	4.59
Diluted earnings per share, (RMB cents per share)	2.73	4.59
Financial ratios
Gross profit margin	33.5%	50.3%
Net profit margin	20.7%	34.7%

The board (the "Board") of directors (the "Directors") of Shenguan Holdings (Group) Limited (the "Company") is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2016 (the "Period"), which have been prepared in accordance with the Hong Kong Accounting Standard 34 Interim Financial Reporting issued by Hong Kong Institute of Certified Public Accountants. The 2016 condensed consolidated interim results of the Group have been reviewed by the audit committee and auditors of the Company, and approved by the Board on 19 August 2016.

Revenue of the Group was approximately RMB430.7 million for the Period, slightly decreased by 1.1 per cent from approximately RMB435.7 million for the six months ended 30 June 2015 (the "Prior Period"). Profit attributable to owners of the Company decreased by 41.1 per cent to approximately RMB89.0 million from approximately RMB151.1 million of the Prior Period. Excluding the non-cash effect arising from the amortization of technology knowhow that is attributable to shareholders to the net profit of the Group of RMB9.7 million, profit attributable to owners of the Company for the Period decreased by approximately 34.7 per cent. Basic earnings per share of the Group were RMB2.73 cents for the Period (Prior Period: RMB4.59 cents).

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2016

Six months ended 30 June

Notes	2016 (Unaudited) RMB'000	2015 (Unaudited) RMB'000 (Restated)
REVENUE	5	430,697	435,691
Cost of sales	(286,493)	(216,337)
Gross profit	144,204	219,354
Other income and gains	5	38,647	22,028
Selling and distribution expenses	(8,805)	(5,713)
Administrative expenses	(73,459)	(42,162)
Finance costs	6	(7,507)	(7,864)
PROFIT BEFORE TAX	7	93,080	185,643
Income tax expense	8	(14,154)	(34,546)
PROFIT FOR THE PERIOD	78,926	151,097
OTHER COMPREHENSIVE INCOME
Other comprehensive income to be

reclassified to profit or loss in subsequent periods:

Exchange differences on translation of foreign

operations (3,262) (1,760)

NET OTHER COMPREHENSIVE INCOME

TO BE RECLASSIFIED TO PROFIT OR
LOSS IN SUBSEQUENT PERIODS AND
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD, NET OF TAX	(3,262)	(1,760)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 75,664 149,337

Profit attributable to:

Six months ended 30 June 2016 2015 (Unaudited) (Unaudited)

Note RMB'000 RMB'000

(Restated)

Owners of the Company	88,962	151,149
Non-controlling interests	(10,036)	(52)
78,926	151,097
Total comprehensive income attributable to: Owners of the Company	85,700	149,389
Non-controlling interests	(10,036)	(52)
75,664	149,337
EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY	10
Basic (RMB cents per share)	2.73	4.59
Diluted (RMB cents per share)	2.73	4.59